Allowed

Punjab National Bank v. M/s M K Auto Components

DRT1 Apr 2026OA/1027/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery. The court adjusted the claimed penal interest and modified the future interest rate to 9% per annum. A recovery certificate was issued against the defendants who failed to appear.

What did the court decide?

Recovery of Rs.43,23,255/- with future interest @9% p.a. from filing date; issue of Recovery Certificate; right to sell hypothecated machinery.

Punjab National Bank versus M/s M K Auto Components — Banking and Recovery | DRT (2026)

¶1

Presented on .. 27.07.2022 Registered on .. 11.11.2022 Decided on .. 01.04.2026 Duration .. Y—M—D 03--08--04

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1027/2022.

¶3

Punjab National Bank,

¶4

A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 1970 having its head office at Plot No. 7, Sector 10, Dwarka, New Delhi and branch at – Kondhwa Khurd, Pune 411 048. Thereafter the account transferred to Circle Sastra Centre, Pune at Aurora Towers, 9, Moledina Road, Camp, Pune 411 001.

¶5

… Applicant

¶6

Versus

¶7

1 M/s. M.K. Auto Components, A partnership firm through its partners –

¶8

a) Mr. Sunil Battu Nimbalkar,

¶9

b) Mr. Vasim Kutubuddin Mulla,

¶10

Address – Gat No. 163, Barge Wasti, Chakan, Pune 410 501.

¶11

Also at – 626/1B, Kuruli, Near Spicer Company, Pune-Nashik Highway, Chakan, Taluka Khed, Pune 410 501.

¶12

Sanap ( OA No. 1027/2022 ) 1 of 7

¶13

2 Mr. Sunil Battu Nimbalkar, R/at : S.No. 22/5/1/1, Tuljai Colony, Near Sancheti School, Thergaon, Chinchwad Gaon, Pune City 411 033.

¶14

3 Mr. Vasim Kutubuddin Mulla, R/at : Galli No. 4, Near K.K. Glass, Anandvan Society, Thergaon, Pune City 411 033. … Defendants

¶15

Appearances :-

¶16

For Applicant Advocate Rajashree Thakar. For Defendants Ex parte.

¶17

Total Claim Amount – Rs.44,70,563/-

¶18

JUDGMENT

¶19

(Delivered on 01^st April, 2026)

¶20

The Applicant Bank has filed the present application for recovery of the sum of Rs.44,70,563/- together with future interest @12.30% per annum from the date of Application till realization of the entire dues from the defendants.

¶21

Brief facts of the application are as under :-

¶22

Defendant No.1 is a Principal borrower and defendant Nos. 2 and 3 are partners of defendant No.1 partnership firm, therefore, personally liable for repayment of the dues of loan facility granted by Oriental Bank of Commerce merged into Punjab National Bank.

¶23

Sanap ( OA No. 1027/2022 ) 2 of 7

¶24

As per the loan application dated 03.07.2015 of defendant No.1 through its partners i.e. Mr. Iratappa Chandanna Biradar and defendant No.2 for the purpose of expanding their business and purchase of equipments, the applicant Bank sanctioned the Term loan I facility of Rs.14,60,000/- to defendant No.1 vide Sanction Letter dated 03.07.2015 under CGTMSE Scheme i.e. Credit Guarantee Fund Trust for Micro and Small Enterprises, on execution of necessary loan and security documents by them in favour of the applicant Bank. They have also hypothecated machinery Jyoti CNC Lathe Machine Model DX200-3A and servo controlled voltage stabilizer with all features and accessories on 04.07.2015.

¶25

Thereafter, again as per the loan application dated 24.09.2015 of defendant No.1 through its partners i.e. Mr. Iratappa Chandanna Biradar and defendant No.2 for the purpose of expanding their business and purchase of equipments, the applicant Bank sanctioned the Term loan II facility of Rs.15,70,000/- to defendant No.1 vide Sanction Letter dated 24.09.2015 under CGTMSE Scheme, on execution of necessary loan and security documents along with hypothecation by them in favour of the applicant Bank.

¶26

Sanap ( OA No. 1027/2022 ) 3 of 7

¶27

Thereafter, again as per the loan application dated 29.02.2016 of defendant No.1 through its partners i.e. Mr. Iratappa Chandanna Biradar and defendant No.2 for the purpose of expanding their business and purchase of equipments, the applicant Bank sanctioned the Term loan III facility of Rs.31,00,000/- to defendant No.1 vide Sanction Letter dated 29.02.2016 under CGTMSE Scheme, on execution of necessary loan and security documents along with hypothecation by them in favour of the applicant Bank.

¶28

The applicant Bank further contended that the partnersof defendant No.1 firm Mr. Iratappa Biradar and Laxman Sopan Jadhav retired from the partnership firm and defendant No. 3 has been entered as a partner of defendant No. 1 Firm as per deed of Retirement and Admission.

¶29

The defendants have also executed Balance and Security Confirmation Letters on 30.11.2017 and 21.01.2021 and thereby confirmed the balance outstanding in loan accounts.

¶30

The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 31.03.2021, the

¶31

Sanap ( OA No. 1027/2022 ) 4 of 7

¶32

applicant Bank has classified the account of the defendants as Non-Performing Asset in accordance with guidelines of Reserve Bank of India. Thereafter, on 25.02.2022, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank.

¶33

Hence, this application is filed.

¶34

The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendants as per Order dated 10.03.2025 and 02.07.2025 passed below Application (Exhibit-1).

¶35

The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Praveen Chandra Potdar, Branch Manager and Authorized Official of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-28 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

¶36

I have heard arguments of the learned Advocate for the applicant Bank.

¶37

Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the

¶38

Sanap ( OA No. 1027/2022 ) 5 of 7

¶39

applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

¶40

The applicant Bank has claimed Penal Interest for three Term Loans of Rs.21,154/- +25,439/- +52,434/- and other charges for three Term Loans of Rs.4,836/- + Rs.39,763/+ Rs.3,682/-, (total of Rs.1,47,308/-) which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.44,70,563/- is reduced to Rs.43,23,255/-.

¶41

The applicant Bank has claimed future interest @12.30% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

¶42

Hence, I pass the following order.

¶43

O R D E R

¶44

A} Original Application No. 1027/2022 is allowed with costs.

¶45

B} Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.43,23,255/- (Rupees Forty Three Lakhs Twenty Three Thousand Two Hundred Fifty Five only) along with future interest @9% per annum from the date of filing of the Original

¶46

Sanap ( OA No. 1027/2022 ) 6 of 7

¶47

Application i.e. 27.07.2022 till full payment/realization of the amount mentioned in this operative order.

¶48

C} The aforesaid adjudicated amount is secured by the hypothecation in respect of machinery Jyoti CNC Lathe Machine Model DX200-3A and servo controller voltage stabilizer with all features and accessories, more particularly described in the Para No. 5 of the Original Application.

¶49

D} The applicant Bank is entitled to sell the hypothecated property to recover its dues.

¶50

E} Issue Recovery Certificate.

¶51

F} The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

¶52

Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 01.04.2026 Debts Recovery Tribunal, Pune.

¶53

Sanap ( OA No. 1027/2022 ) 7 of 7

Punjab National Bank v. M/s M K Auto Components

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s M K Auto Components

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus Shubhangi Rakshe

Indian Bank versus Krantisinh Nana Patil Multistate Dudh Utpadak and Prakriya Sangh Limited Knpmdupsl

Union Bank of India (Corporation Bank) versus Santosh Birje

Idbi Bank versus Murad

Bank of Baroda versus Narendra Gokhale

Indian Overseas Bank versus Rahul